Advanced Accounting 1-Partnership Formation

PROBLEM 1 On April 1, 2019, Odette and Lance formed a partnership with each contributing the following assets: Odette Lance Cash 120,000 80,000 Machinery and equipment 100,000 300,000 Building 900,000 Furniture and fixtures 40,000 The building is subject to a mortgage loan of 320,000, which is to be assumed by the partnership. Required: Prepare the journal entries for the investment of partners PROBLEM 2 Carmilla and Cecilion are forming a partnership by combining their businesses. Their books show the following: Carmilla Cecilion Cash 72,000 30,000 Account receivable 150,000 108,000 Merchandise inventory 240,000 156,000 Furnitures and fixtures 330,000 102,000 Prepaid expenses 63,000 21,000 Accounts payable 366,000 144,000 Carmilla, capital 489,000 Cecilion, capital 273,000 It has been agreed to recognize uncollectible accounts of P7,500 and P5,400 to each party, respectively and that the furniture and fixtures of Cecilion are overdepreciated by P9,000. Each partner's share of equity is to be equal to the net assets invested. Required: a. Prepare the journal entries for the investment and adjustments b. What is the total capital of Carmilla and Cecilion